Axway Software's Board of Directors examined the consolidated
financial statements for fiscal year 2013 at its meeting of February 14,
chaired by Pierre Pasquier. This year’s results are in line with the
guidance published by the Group, despite poorer performance in the
fourth quarter.

FY 2013

FY 2012

FY 2011

(in M€)

(% Rev)

(in M€)

(% Rev)

(in M€)

(% Rev)

Key income statement items

Revenue

237.5

224.3

217.2

Organic growth

3.7%

-1.6%

5.7%

Profit on operating activities

37.5

15.8%

35.0

15.6%

35.3

16.3%

Profit from recurring operations

32.4

13.7%

31.7

14.1%

33.3

15.3%

Other income and expense

-5.3

-2.9

-4.0

Net financial costs and currency impact

-1.3

-0.1

-2.7

Income Taxes

9.8

-4.0

-5.2

Net profit

35.6

15.0%

24.7

11.0%

21.5

9.9%

(in €)

(in €)

(in €)

Basic net earnings per share

1.75

1.22

1.20

Earnings per share are calculated on the basis of 20,379,481 shares
for 2013, compared with 20,255,401 for 2012.

Comments on 2013 activity

2013 was characterized by:

The well-received launch of the Axway 5 Suite, significant license
agreements signed in the USA and France, and confirmation of intense
demand in the Application Programming Interface (API) area whose
offering (resulting from the acquisition of Vordel) was integrated
into the Axway 5 Suite. Its successful integration has led to growth
in this activity in line with our expectations. The API area has
confirmed its growth potential for the years ahead;

The launch in the fourth quarter of new versions of components for the
company’s strategic technologies (MFT, B2B) reinforcing Axway’s
leadership in these areas;

Recognition of Axway by Gartner as being among the leaders in the
Application Integration Suite and Application Services Governance
segments (MQ Gartner, August 2013);

Axway’s executive management, strengthened by the arrival of new
members from leading global software publishers.

After the first three quarters posted significant growth, 2013 ended
with a declining fourth quarter compared with earlier years, the result
of license agreements being deferred mainly in the United States. These
deferrals reflect difficulties in executing commercial agreements, which
have led to operational changes. Accordingly, it was impossible to fully
maintain the ‘progress’ recorded in 2013 through the end of the year.

Revenue by region (in M€)

Exercise 2013

2013

2012 Published

2012 Pro forma

Total Growth

Organic Growth1

France

82.5

75.4

76.2

9.4%

8.4%

Rest of Europe

57.6

55.6

58.4

3.6%

-1.4%

Americas

90.7

86.5

87.8

4.8%

3.3%

Asia/Pacific

6.7

6.8

6.6

-0.6%

2.0%

Axway

237.5

224.3

229.0

5.9%

3.7%

(1) at constant exchange rates and scope of consolidation

The solid performance in France with 8.4% growth confirmed the recovery
witnessed since the fourth quarter of 2012 and enabled this area to
enter 2014 with a strong commercial portfolio. The Americas failed to
continue its progress recorded during the first three quarters of the
year on account of license agreements being deferred in the fourth
quarter. The other countries of Europe saw mixed fortunes with growth
declining by 1.4% and Asia remained positive with growth of 2.0%.
Business as a whole saw organic growth of 3.7% (total growth of 5.9%).

Revenue by activity (in M€)

Exercise 2013

2013

2012 Published

2012 Pro forma

Total Growth

Organic Growth1

Licenses

75.6

71.4

75.4

5.8%

0.3%

Maintenance

106.3

98.2

98.2

8.3%

8.2%

Services

55.6

54.7

55.4

1.7%

0.4%

Axway

237.5

224.3

229.0

5.9%

3.7%

(1) at constant exchange rates and scope of consolidation

License business stabilized in 2013 after a mixed previous year; the
positive reception of the new Axway 5 Suite and the dynamism of the API
(Application Programming Interface) area made a partial contribution in
2013 and should play a major role in 2014.The 8.2% growth in
maintenance was excellent, raising this highly recurring activity to
more than 45% of Group revenue. Services remained globally stable in
2013 but with varying dynamism (Cloud, Managed Services).

Financial position

Axway has a very solid financial situation at December 31, 2013 with a
cash balance of €49.2 million, a net debt of €35.1 million and
shareholder’s equity of €258.4 million.No acquisitions were made
in 2013 (excluding the takeover of a distribution partner in Brazil in
September 2013). For this reason, and given the partial use of the
credit line, the company’s debt at December 31, 2013 allows to
comfortably respect its banking covenants.The level of operating
margin (15.8%) was up 20 basis points compared with 2012, despite a
lower than expected fourth quarter. This solid result reflects the
robustness of the Axway business model, making it possible to maintain
all the investments required to sustain its competitive edge, which
remains intact and is a key growth driver. Net profit at December 31,
2013 was €35.6 million (15.0% of net margin), sharply up from €24.7
million in 2012 (11.0% of net margin). The 2013 net result integrates
the half year exceptional items of the settlement of the GSA matter with
the American Department of Justice and the activation of the tax losses
in the United States, made possible from the growth in profitability
(historic and forecasted) of the US subsidiary of the group. Without the
impact of these two exceptional items, our net result would have been
€27.1 million or €1.33 per share.Consolidated financial statement
audit procedures are under way.

Workforce

Axway employed 1,783 people at December 31, 2013 (610 in France and
1,173 in other countries), an increase of 9 employees compared with
December 31, 2012.

Cash dividend

Axway’s Board of Directors will propose, at the next Shareholders'
Meeting, the distribution of a dividend of €0.40 per share for 2013.

Strategy

Axway is continuing its growth plan by rolling out infrastructure to
govern the flow of data aimed at large organizations and their
ecosystems. This positioning is based on a market whose dynamism is
driven by the major technological drivers (mobility, Cloud, Big Data,
Internet of Things) which are leading to the sizable development of data
flows both inside and outside the company. Axway has robust historical
assets (MFT, B2B technology) enabling it to take advantage of these
trends and has made key choices (API) to maintain a significant
competitive edge. Within this context, Axway is maintaining its
investments to retain this positioning and develop its commercial
presence; these investments are reflected in internal growth projects
and external acquisitions.

Outlook

Confident of the quality of its positioning and its competitive
advantages and strengthened by the positive reception of its new
offerings by its customers, Axway expects significant growth in 2014,
both organically and through external acquisitions and targets to
maintain its operating margin at the current level.With this in
mind, the start of the year appears to be in line with these objectives.

Revenue by region and by quarter (in M€)

1st Quarter

2013

2012 Published

2012 Pro forma

Total Growth

Organic Growth1

France

16.9

15.7

15.8

7.8%

6.8%

Rest of Europe

12.3

12.7

13.6

-3.5%

-9.2%

Americas

19.1

16.3

16.5

17.3%

15.7%

Asia/Pacific

1.6

1.2

1.2

27.1%

27.1%

Axway

49.9

46.0

47.2

8.6%

5.9%

2nd Quarter

2013

2012 Published

2012 Pro forma

Total Growth

Organic Growth1

France

17.9

16.9

16.9

5.8%

5.7%

Rest of Europe

14.4

12.4

12.9

16.3%

12.2%

Americas

22.5

21.7

23.1

3.6%

-2.5%

Asia/Pacific

1.7

1.4

1.5

18.6%

10.0%

Axway

56.5

52.4

54.4

7.7%

3.9%

3rd Quarter

2013

2012 Published

2012 Pro forma

Total Growth

Organic Growth 1

France

20.4

16.6

16.9

22.9%

21.0%

Rest of Europe

13.2

11.6

13.2

13.2%

-0.5%

America's

24.8

20.8

21.1

19.1%

17.5%

Asia/Pacific

1.6

1.6

1.5

-4.0%

7.1%

Axway

60.0

50.7

52.7

18.4%

13.8%

4th Quarter

2013

2012 Published

2012 Pro forma

Total Growth

Organic Growth1

France

27.3

26.2

26.5

4.2%

2.9%

Rest of Europe

17.7

18.8

18.8

-6.0%

-5.8%

America's

24.2

27.7

27.0

-12.4%

-10.3%

Asia/Pacific

1.9

2.5

2.4

-22.9%

-19.2%

Axway

71.2

75.2

74.7

-5.4%

-4.8%

(1) at constant exchange rates and scope of consolidation

Revenue by activity and by quarter (in M€)

1st Quarter

2013

2012 Published

2012 Pro forma

Total Growth

Organic Growth1

Licenses

10.6

9.4

10.0

13.1%

5.5%

Maintenance

25.7

23.2

23.7

10.7%

8.8%

Services

13.6

13.4

13.5

1.8%

0.9%

49.9

46.0

47.2

8.6%

5.9%

2nd Quarter

2013

2012 Published

2012 Pro forma

Total

Growth

Organic Growth1

Licenses

16.4

15.2

16.5

7.7%

-0.9%

Maintenance

26.7

23.9

24.2

11.8%

10.2%

Services

13.4

13.3

13.6

0.5%

-1.8%

Axway

56.5

52.4

54.4

7.7%

3.9%

3rd Quarter

2013

2012 Published

2012 Pro forma

Total

Growth

Organic Growth 1

Licenses

20.2

12.6

14.7

60.0%

37.6%

Maintenance

26.6

24.9

24.8

6.7%

7.1%

Services

13.3

13.2

13.3

0.6%

0.1%

60.0

50.7

52.7

18.4%

13.8%

4th Quarter

2013

2012 Published

2012 Pro forma

Total

Growth

Organic Growth 1

Licenses

28.5

34.3

34.1

-17.0%

-16.7%

Maintenance

27.4

26.2

25.5

4.5%

7.3%

Services

15.4

14.8

15.0

3.7%

2.3%

Axway

71.2

75.2

74.7

-5.4%

-4.8%

(1) at constant exchange rates and scope of consolidation

Income Statement

(in thousands of euros)

FY 2013

FY 2012

FY 2011

Revenue :

License

75 583

71 435

77 762

Maintenance

106 348

98 205

85 037

Total Product Revenue

181 931

169 640

162 799

Services

55 613

54 680

54 445

Total Revenue :

237 544

224 320

217 244

Costs of sales:

Product Revenue

20 721

20 653

19 929

Services

51 407

51 070

49 285

Total Costs of sales :

72 128

71 723

69 214

Gross profit:

165 416

152 597

148 030

as a % of Revenue

69.6%

68.0%

68.1%

Operating expenses :

Sales and marketing

70 763

64 077

61 528

Research and development

33 636

32 508

32 079

General and administrative

23 549

21 046

19 120

Total operating expenses :

127 948

117 631

112 727

Profit on operating activities

37 468

34 966

35 303

as a % of Revenue

15.8%

15.6%

16.3%

Stock option releated expenses

(1 352)

(1 147)

(146)

Amortization of intangible assets

(3 679)

(2 130)

(1 858)

Profit from recurring operations

32 437

31 689

33 299

as a % of Revenue

13.7%

14.1%

15.3%

Other income and expenses

(5 271)

(2 940)

(3 967)

Operating profit

27 166

28 750

29 332

Cost of net financial debt

(674)

(51)

(1 633)

Other financial revenues and expenses

(656)

(63)

(1 034)

Income taxes

9 759

(3 976)

(5 208)

Net Profit

35 595

24 660

21 457

15.0%

11.0%

9.9%

Simplified Balance Sheet

31/12/2013

31/12/2012

31/12/2011

(in M€)

(in M€)

(in M€)

ASSETS

Goodwill

189.3

196.6

169.6

Intangible assets

28.8

31.0

19.4

Property, plant and equipment

6.3

6.2

4.9

Other non-current assets

31.5

18.5

15.3

Non-current assets

255.9

252.3

209.2

Trade receivables

64.4

72.2

57.1

Other current assets

22.5

17.1

13.8

Cash and cash equivalents

49.2

35.4

23.8

Current assets

136.1

124.7

95.3

TOTAL ASSETS

392.0

377.0

304.5

SHAREHOLDERS' EQUITY AND LIABILITIES

Share capital

40.9

40.6

40.3

Capital reserves and results

217.4

193.3

173.1

Total shareholders' equity

258.4

233.9

213.4

Financial debt - long-term portion

28.5

36.9

2.0

Other non-current liabilities

15.5

16.2

14.6

Non-current liabilities

44.0

53.1

16.6

Financial debt - short-term portion

9.5

5.3

0.5

Other current liabilities

80.1

84.7

74.0

Current liabilities

89.6

90.0

74.5

TOTAL LIABILITIES

133.6

143.1

91.1

TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES

392.0

377.0

304.5

Cash Flow Statement

FY 2013

FY 2012

FY 2011

(in M€)

(in M€)

(in M€)

Net profit for the period

35.6

24.7

21.5

Net charges to amortizations, depreciations and provisions

8.0

5.8

4.4

Other income and expense items

1.7

0.6

0.3

Cash from operations after cost of net debt and tax

45.3

31.1

26.2

Changes to operating working capital requirements

(3.6)

(10.8)

8.1

Costs of net financial debt

0.7

0.1

1.6

Income tax paid net of accrual

(14.1)

(0.2)

(0.6)

Net cash from operating activities

28.3

20.2

35.3

Net cash used in investing activities

(3.6)

(45.6)

(3.6)

Proceeds on shares issued

2.2

2.1

61.2

Dividends paid

(7.1)

(5.0)

(21.8)

Change in current account - Sopra Group

-

-

(68.4)

Change in loan

(4.4)

40.0

-

Net interest paid

(0.7)

-

(1.6)

Other changes

0.3

0.1

(0.2)

Net cash from (used in) financing activites

(9.7)

37.2

(30.8)

Effect of foreign exchange rate changes

(1.2)

(0.1)

0.5

NET CHANGE IN CASH AND CASH EQUIVALENTS

13.8

11.7

1.4

Opening cash position

35.4

23.7

22.3

CLOSING CASH POSITION

49.2

35.4

23.7

Financial Calendar

Wednesday, February 19, 2014 at 2.30pm: meeting of financial analysts
at the Hôtel Le Meurice, Paris

Monday, April 28, 2014 (after close of trading): Publication of Q1
2014 revenue.

Wednesday, June 4, 2014 at 2.30pm: General Meeting at the Hôtel Le
Meurice, Paris.

Disclaimer

This document is a free translation into English of the original French
press release. It is not a binding document. In the event of a conflict
in interpretation, reference should be made to the French version, which
is the authentic text.

About Axway

Axway (NYSE Euronext: AXW.PA),
a market leader in governing the flow of data, is a global software
company with more than 11,000 public- and private-sector customers in
100 countries. For more than a decade, Axway has empowered leading
organizations around the world with proven solutions that help manage
business-critical interactions through the exchange of data flowing
across the enterprise, among B2B communities, cloud and mobile devices.
Our award-winning solutions span business-to-business integration,
managed file transfer, API and identity management, and email security–
offered on premise and in the Cloud with professional and managed
services. Axway is registered in France with headquarters in the United
States and offices in 19 countries.